If Your Time Horizon Is Zero to Five Years and Your

question 59

Multiple Choice

If your time horizon is zero to five years and your portfolio consists of 35 percent cash,40 percent bonds,and 25 percent stocks,you would be considered to have a(n) ____ investment philosophy.

• A)conservative
• B)aggressive
• C)moderate
• D)ultraconservative

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Definitions:

Payment Stream

A series of payments made over a period of time, often in the context of loans or annuities.

Production Units

Quantities of output, such as goods or services, produced within a specified timeframe.

Demand Decrease

A reduction in the quantity of a product or service that consumers are willing and able to purchase at a given price.

Compounded Quarterly

Interest calculated and added to the principal four times a year.